Core Viewpoint - Zscaler is experiencing a strong recovery in its stock performance, with analysts showing a bullish consensus and the potential for reaching record highs for the first time since 2021 [1][2][12]. Company Performance - Zscaler reported $2.67 billion in revenue for fiscal 2025, marking a 23% increase from the previous year and exceeding management's forecast of $2.66 billion [9]. - The company managed to reduce its GAAP loss to $41.4 million, a 28% improvement from the prior year, while achieving a non-GAAP profit of $535.8 million, up 29% year-over-year [10][11]. Analyst Ratings - Among 49 analysts covering Zscaler, 30 have assigned a buy rating, with none recommending a sell, indicating strong market confidence [12]. - The average price target for Zscaler stock is $318.26, suggesting a potential upside of 13% over the next 12 to 18 months, with a Street-high target of $385 indicating a possible 37% upside [13]. Market Position and Strategy - Zscaler is a leader in zero-trust cybersecurity, addressing vulnerabilities created by the shift to online operations and remote work [4][5]. - The company aims to convince 390 organizations to adopt its Zero Trust Everywhere approach by the end of fiscal 2026, having already secured over 350 by the end of fiscal 2025 [8]. Valuation Metrics - Zscaler's price-to-sales (P/S) ratio has decreased to 16.5 from a peak of over 60 in 2021, positioning it competitively between rivals Palo Alto Networks and CrowdStrike [14]. - The company estimates its addressable market at $96 billion, indicating significant growth potential based on its fiscal 2025 revenue [16].

Core Viewpoint - Zscaler, Inc. is a leading player in the cybersecurity sector, but its high price-to-sales (P/S) multiple of 15.56X raises concerns about its valuation amid slowing growth rates [1][6]. Financial Performance - In Q3 FY25, Zscaler reported a year-over-year revenue growth of 22.6%, a decline from the 30% range in FY24 and 40% in FY23 [3][4]. - The revenue growth forecast for FY25 is expected to be around 22.7%, indicating a continued slowdown [4]. - The Zacks Consensus Estimate for Zscaler's FY25 earnings suggests a year-over-year decline of 0.31% [7]. Competitive Landscape - Zscaler faces increasing competition from established cybersecurity firms such as Palo Alto Networks, CyberArk, and CrowdStrike, which are investing heavily in innovative cybersecurity solutions [5][6]. - The company must maintain high spending on R&D to stay competitive and innovate in the market [5][6]. Growth Initiatives - Zscaler's New Growth Categories, which include Zero Trust Everywhere and Agentic Operations, reached approximately $1 billion in annual recurring revenues (ARR) [10]. - The company has successfully implemented its Zero Trust Exchange, gaining over 210 adoptions and achieving 60% quarter-over-quarter growth in Q3 FY25 [9]. - Zscaler's total ARR reached $2.9 billion in Q3 FY25 [10]. Strategic Partnerships and Innovations - Zscaler has launched new solutions like Asset Exposure Management and partnered with SAP to integrate its services within SAP's RISE framework [11]. - The company is enhancing its offerings with AI technologies through partnerships with NVIDIA and CrowdStrike [12]. Government Sector Expansion - Zscaler is expanding its GovCloud solutions and has enabled numerous government agencies to utilize its products, serving 14 out of 15 U.S. cabinet-level agencies [14][15]. - The inclusion in Amazon Web Services' Internet Control Message Protocol enhances Zscaler's accessibility to U.S. federal agencies [15]. Market Performance - Zscaler's share price has surged 74% year-to-date, outperforming the Zacks Security Industry and its peers [16].

Core Insights - Gorilla Technology Group Inc. (GRRR) announced a $105 million direct offering of common stock, including a $100 million investment from a new institutional investor [1][2] - The company will sell 6 million shares at $17.50 per share, which is a significant discount from its previous closing price of $22.38 [4][8] - The fresh capital will enhance Gorilla's ability to pursue large-scale projects and fund previously announced acquisitions [2][5] Funding and Acquisitions - The funding will support acquisitions, bid bonds, and growth in AI and smart city technologies [8] - Gorilla Technology agreed to acquire two Thai tech firms, CNS and its subsidiary CANS, to gain access to their AI platforms and customer base in Thailand [3][8] Market Position and Performance - Gorilla Technology's shares have gained 10.1% year to date, outperforming the broader industry [7] - The company trades at a forward price-to-sales ratio of 3.25X, above the industry average of 2.86X, with a Zacks Consensus Estimate for 2025 earnings implying a 115.8% improvement year over year [9]

Core Insights - CrowdStrike Holdings, Inc. (CRWD) is enhancing its position in cybersecurity by expanding into IT operations with its new product, Falcon for IT, which aims to streamline endpoint management and improve security posture [1][11] Company Developments - Falcon for IT is a unified platform that utilizes AI and real-time insights to provide organizations with better visibility, control, and faster response times in their IT environments [2] - The platform has already begun to see adoption, with a notable deal in the first quarter of fiscal 2026 where it replaced a legacy endpoint management tool for a Fortune 100 technology firm as part of a nine-figure expansion [3][11] - The Falcon platform now includes over 30 modules, indicating a shift towards offering integrated tools that address both security and IT operations, which can help reduce costs for customers by minimizing the need for multiple separate tools [4][5] Competitive Landscape - Competitors like Zscaler and Palo Alto Networks are also evolving their platforms to meet enterprise security demands, with Zscaler reporting an annual recurring revenue (ARR) of $2.9 billion, up 23% year over year [6][7] - Palo Alto Networks is focusing on its platformization strategy, closing over 90 net new platform deals in the third quarter of fiscal 2025, indicating strong momentum in its security operation platform [8] Financial Performance - CrowdStrike's shares have increased by 47.9% year to date, outperforming the security industry's growth of 23.8% [9] - The company trades at a forward price-to-sales ratio of 23.73X, which is higher than the industry's average of 14.91X [13] - The Zacks Consensus Estimate for CRWD's fiscal 2026 earnings suggests a year-over-year decline of 10.94%, while fiscal 2027 earnings are expected to grow by 34.68% [16]

Core Viewpoint - Zscaler's stock has surged by 51% in 2025, defying broader market pessimism, driven by strong financial performance and an optimistic outlook for future growth [1][3]. Financial Performance - Zscaler reported $678 million in revenue for the third quarter of fiscal 2025, marking a 23% increase year-over-year and exceeding management's guidance of $665 million to $667 million [9]. - The company raised its full-year revenue guidance for fiscal 2025 to $2.66 billion, up from a previous estimate of $2.647 billion [10]. - On a non-GAAP basis, Zscaler achieved a net income of $136.7 million, reflecting a year-over-year increase of 20.7% [11]. Market Position and Growth Potential - Zscaler's Zero Trust Exchange platform is rapidly expanding, with 210 customers adopting the "zero trust everywhere" approach, a 60% increase from the previous year [8]. - The company views its addressable market as worth $96 billion, indicating significant growth potential [14]. - Zscaler's remaining performance obligation (RPO) increased by 30% to $5 billion, suggesting an acceleration in future revenue growth [14]. Analyst Sentiment - The majority of analysts covering Zscaler stock have assigned it a buy rating, with none recommending a sell [12]. - The average price target for Zscaler stock is $285.98, indicating a potential upside of 3.7% over the next 12 to 18 months, with a high target of $323 suggesting a 17.1% increase [13].

Core Viewpoint - Zscaler is expected to report third-quarter fiscal 2025 results with anticipated revenues of $665 million to $667 million, reflecting a year-over-year growth of 20.4% [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for Zscaler's fiscal third-quarter revenues is $666.1 million [1]. - Non-GAAP earnings per share are expected to be between 75-76 cents, with the Zacks Consensus Estimate at 75 cents, indicating a year-over-year decline of 14.8% [2]. - Revenue estimates from Channel Partners and Direct Customers are projected at $588 million and $77.4 million, respectively, with a remaining performance obligation of approximately $4.65 billion [10]. Market and Product Insights - Sustained demand for Zscaler's security and networking solutions is anticipated, driven by the expansion of the global security space and the adoption of its Zero Trust Exchange [7]. - The growing adoption of Software-Defined Wide Area Network (SD-WAN) solutions is expected to be a primary driver, with the market projected to reach $80.91 billion by 2034, growing at a CAGR of 31.6% [8]. - Zscaler's existing core products, including Zscaler Internet Access and Zscaler Private Access, are contributing to customer retention, while new features in its Zero Trust Exchange are aiding product portfolio expansion [9]. Competitive Position and Financial Performance - Zscaler's shares have increased by 40.9% year-to-date, outperforming the Zacks Security industry's growth of 16.9% [12]. - The stock is trading at a forward 12-month P/S of 12.79X, which is lower than the industry's 14.21X, indicating potential undervaluation [13]. Strategic Initiatives and Challenges - The company is investing in sales and marketing capabilities and increasing research and development costs to address longer deal cycles due to tighter IT budgets [11]. - Zscaler faces intense competition from established players like Palo Alto Networks and CrowdStrike, necessitating continuous investment in broadening its capabilities [18][19]. Long-term Outlook - The demand for cybersecurity solutions is rising due to increasing data breaches, and Zscaler's strong presence across various verticals provides stability against macroeconomic headwinds [16][17]. - Despite the long-term growth prospects, near-term challenges related to profit growth suggest a cautious approach for new investments [20].